London listing for Goldman Sachs’ £3.6bn investment vehicle that owns minority stakes in multiple alternative asset firms
- Petershill plans to raise £542m by issuing new ordinary shares from the IPO
- Set up 14 years ago, Petershill is part of Goldman Sachs Asset Management
- There has been a boom in new firms listing on the London Stock Exchange
Investment giant Goldman Sachs has revealed plans to list an alternative fund vehicle on the London Stock Exchange.
Petershill Partners, a minority stake owner in multiple alternative asset firms, could be valued at up to $5billion (£3.6billion) from the listing, which will see it become a standalone company.
The group also plans to raise $750million (£542million) by issuing new ordinary shares from the initial public offering to purchase more stakes in the alternative asset management sector.
Petershill Partners, a minority stake owner in multiple alternative asset firms, could be valued at up to $5billion (£3.6billion) from the listing
This industry is forecast to see its assets under management grow by a compound annual growth rate (CAGR) of 10 per cent between 2020 and 2025, data provider Preqin has estimated.
Set up 14 years ago, Petershill is part of Goldman Sachs Asset Management (GSAM) and holds shares in 19 alternative asset companies that collectively manage $187billion in assets.
Its holdings include Silicon Valley-based Industry Ventures, which has invested in Facebook and Alibaba, private equity group Accel-KKR, and Caxton Associates, one of the world’s oldest hedge funds.
Distributable earnings climbed from $108million in 2018 to $243million two years later, while in the 12 months to the end of June this year, the equivalent figure was $310million.
Should the IPO go ahead, it would make the firm the biggest listed alternatives business in London and come amidst a significant boom in new companies listing on the capital’s stock market.
Ali Raissi, co-head of the Petershill group, said the IPO is ‘a natural next step in the evolution of the offering to partner firms, establishing a permanent capital source, and demonstrating long-term strategic alignment and partnership.
Parent firm: Petershill is part of Goldman Sachs Asset Management (GSAM) and holds shares in 19 alternative asset companies that collectively manage $187billion in assets.
‘We would continue to support the growth of leading alternative asset managers whose best days are ahead of them, whilst allowing their management teams to maintain their strategic focus, drive and independence.’
In recent years, investors have turned to alternative investments in record numbers due to low interest rates from banks. But some models have collapsed due to the complexity of the investments or unrealistic returns not being made.
Petershill said its model would create a highly diversified business, focusing on the fastest-growing parts of the alternative investment industry, and would provide support to the funds it has invested in with a strong stream of cash from the stock market.
The group’s new chairman, Naguib Kheraj, said: ‘Through a London listing, Petershill Partners would make available to public market institutional investors a unique opportunity to access stakes in a number of leading privately owned alternative asset managers.’
Listing: London is experiencing a significant boom in new companies listing on its stock market, such as payments app Wise and online greetings card seller Moonpig
He added: ‘Through Petershill Partners, investors would benefit from the expertise of Goldman Sachs as its operator, both in terms of managing the existing portfolio and developing opportunities to make additional future investments in this rapidly growing industry.’
Other major companies to list on the LSE this year include payments app Wise, online greetings card seller Moonpig, bootmaker Dr Martens and food delivery giant Deliveroo.
Another was the private equity firm Bridgepoint Capital, which saw its share price surge by over a fifth on its opening day on the London Stock Exchange.
At the same time, foreign private equity firms are increasingly buying up London-listed businesses due to their relatively cheap price arising from the Brexit vote that caused the pound to markedly decline in value, and the coronavirus pandemic.
Blackstone has bought up property development firm St Modwen and private jet services group Signature Aviation, and roadside services business AA was purchased by Warburg Pincus and TowerBrook Capital Partners.